Brewster
and New York City Sign Agreement For Expanded Wastewater Treatment

Commissioner Joel A. Miele Sr., P.E., of the New York City
Department of Environmental Protection (DEP) and Mayor John
Cesar of the Village of Brewster announced today that the
Village and the City had signed an Agreement in Principle
setting out the terms of a transaction that will provide for
the Village to take ownership of the City's wastewater treatment
plant (WWTP) in return for the City paying the cost of upgrading
the plant and expanding the sewerage infrastructure to serve
the entire Village. "This is a win-win arrangement for
the City and the Village," said Commissioner Miele. "From
DEP's point of view, the old facility will be upgraded to
the high standards of the watershed regulations; old and failing
septic systems will be taken out of service; all buildings
within the Village will be connected to a brand new wastewater
collection system and modern treatment facility; DEP scientists
will be able to perform analyses in a modern laboratory; and,
most importantly, the new wastewater infrastructure will improve
water quality in the East Branch of the Croton River and the
Diverting Reservoir.

"Given the history of failed septics in the Village,
DEP will consider a variance under the watershed regulations
to allow for an expanded plant that would alleviate related
water quality problems," said Mayor Cesar. "With
this agreement, the City will fund a major expansion of the
wastewater infrastructure. The results will be that economic
revitalization within the Village will not be stymied by lack
of adequate wastewater treatment facilities and that many
Village property owners will be relieved of worries about
repairing and replacing their defective septic systems. While
the Village will own and maintain the sewer system and the
WWTP, the City will also contribute annually up to $350,000
towards its operation and maintenance. Additionally, the City
will deed an existing parking lot to the Village for a new
parking garage that will serve Main Street in the Village,
and will be equipped with stormwater controls in accordance
with the watershed regulations. DEP will also grant a permit
for passive recreational uses on two other City-owned lots."

The Village of Brewster in southeastern Putnam County has an
estimated population of 1,600. Only a portion of the Village
is served by the City's Brewster WWTP, with the remainder
of the Village utilizing septics systems. It has been estimated
that some 39% of the septics are in failure, often as a result
of poor soils and fractured bedrock in their drainage areas.
DEP's monitoring data at the East Branch of the Croton River,
which discharges into the Diverting Reservoir below Brewster,
indicates that a high number of these systems may not be functioning
properly. The Agreement In Principle is intended to memorialize
the basic terms of the understanding reached between the Village
and the City with regard to the future of the Brewster plant.
These terms will form the basis of a more formal, binding
legal agreement which the Village and the City will immediately
begin to prepare. The basic terms, as reflected in the Agreement
In Principle, may be summarized as follows:

The Village is to receive up to $15.2 million to design and
construct a sewer collection system for the entire Village
and a new wastewater treatment plant that will be built to
the standards established in the watershed regulations. The
plant would be increased in size to take the additional flow
from the failed septics. An additional $1 million will be
set aside in a capital replacement fund to pay for replacement
of capital equipment when it reaches the end of its useful
life.

A new laboratory is to be included in the facility, which
will allow DEP scientists to continue performing the tests
and analyses presently done at the existing Brewster WWTP.

The Village is to assume ownership of, and the responsibility
for operating and maintaining the sewer system and the
WWTP. The Village is to be responsible for the first $50,000
annually for operation and maintenance (O& M); DEP
is to be responsible for up to the next $350,000 in annual
O&M costs (with certain adjustments to account for
inflation). Any additional O&M costs will be the responsibility
of the Village.

Ownership of a City-owned parcel, where the Village presently
operates a parking lot will be transferred to Brewster
for construction of a parking garage with an advanced
storm water pollution prevention system. The existing
lot has no storm water controls, and runoff after rains
can flow into a nearby stream that feeds into the East
Branch of the Croton River.

The Village is to receive a DEP permit for use of two
City-owned lots as park land for passive recreation.

In addition to the wastewater treatment infrastructure agreement,
Commissioner Miele and Mayor Cesar also announced two other
projects scheduled for the Village of Brewster. The City will
pay up to $1 million to the Village for the installation of
sewer lines along Marvin Avenue that will be connected to
the upgraded WWTP. Additionally, the City will pay the Village
as much as $625,000 to make improvements to the stormwater
pollution prevention infrastructure in the Village. This will
involve evaluation of stormwater needs, the formation of a
stormwater district, and the construction of stormwater projects
within the newly-established district. Both of these infrastructure
improvement projects are part of the Croton Consent Decree
that also requires the City to design and construct a filtration
facility for water from its Croton Water Supply System.